13 December 2013
2 min read

The Australian Ethical Fixed Interest Trust (the ‘Trust’) is a new single asset class fund that is now available to all investors.

The Australian Ethical Fixed Interest Trust is the first ethically screened and managed fixed interest fund in Australia.

Previously, our managed fund clients wanting exposure to ethical fixed interest investments had to invest in the Australian Ethical Balanced Trust, which has significant exposure to this asset class. With the addition of the Fixed Interest Trust, our clients now have a suite of single asset class managed funds to choose from and can construct their own multi-asset class portfolio.

As with all our funds, the Trust follows our unique investment process whereby all investments must meet our Australian Ethical Charter

Who can invest in the Fixed Interest Trust?

The Trust is available to all investor types including:

  • Retail investors
  • Wholesale investors
  • Individuals
  • Self-managed super funds
  • Companies
  • Trusts, charitable or philanthropic organisations

For more information about our new Fixed Interest Trust click here, read the PDS and complete an online application form.

How do we invest your money?

We are one of the few investment companies who make all their investments public. We have nothing to hide because we choose our investments carefully and monitor them closely on an ongoing basis. You can find out more about all of the companies we invest in here.

The Fixed Interest Trust will be invested in, fixed rate bonds from issuers such as the Commonwealth and State Governments, as well as banks and other corporate issuers that meet the Australian Ethical Charter.

How does this differ to the Cash Trust?

The Fixed Interest Trust invests in longer term investments than the Cash Trust, and thus carries a slightly higher risk, but also the chance for higher returns.

As opposed to share (or equities) investments whereby investing over the short term can be more risky, with debt (or fixed interest) investments the risk increases if you have longer term investments. For example, a 5 year mortgage is less risky than a 30 year mortgage to the issuer (say your bank) because of the increased risk of no-repayment. Therefore issuers of debt investments like banks, companies and governments will offer a higher rate of return to investors for a longer commitment period.

What are the benefits of investing in the Fixed Interest Trust?

The Trust gives investors the opportunity to invest in a diversified portfolio of interest-bearing investments that generate income.
The Trust provides access to a professionally managed investment portfolio that takes account of ethical factors so that you can invest knowing your money is involved in positive activities.
You can keep track of your investment and the Trust by:

  • Visiting our website www.australianethical.com.au.
  • Reading your statements, which are issued every six months.
  • Using our secure online account access system.
  • Subscribing to regular investment reports.

Australian Ethical’s Managed Funds have also been certified by the Responsible Investment Association of Australasia according to the strict disclosure practices required under the Responsible Investment Certification Program.

How do I invest in the Fixed Interest Trust?

For more information about our new Fixed Interest Trust click here, read the PDS and complete an online application form.